Study the passages below and answer the questions.
Passage IV
In the decade to come, the United States, Europe, and Japan are likely to grow slowly. Their sluggishness, however, will look less worrisome compared with the even bigger story in the global economy, which will be the three to four percent slowdown in China, which is already under way, with a possibly deeper slowdown in store as the economy continues to mature. China’s population is simply too big and aging too quickly for its economy to continue growing as rapidly as it has. With over 50 percent of its people now living in cities, China is nearing what economists call “the Lewis turning point”: the point at which a country’s surplus labor from rural areas has been largely exhausted. This is the result of both heavy migration to cities over the past two decades and the shrinking work force that the one-child policy has produced.As growth slows in China and in the advanced industrial world, these countries will buy less from their export-driven counterparts, such as Brazil, Malaysia, Mexico, Russia, and Taiwan. During the boom of the last decade, the average trade balance in emerging market countries that have managed to sustain a five percent growth rate for a full decade, since 1930, 52 percent were democracies and 48 percent were authoritarian. Atleast over the short to medium term, what matters is not the type of political system a country has, but rather the presence of leaders who understand and can implement the reforms required for growth.

Question 35

Which of the following is a reason for China's slow growth rate?

Create a FREE account and get:

  • All Quant Formulas and Shortcuts PDF
  • 100+ previous papers with solutions PDF
  • Top 5000+ MBA exam Solved Questions for Free


Boost your Prep!

Download App